Detailed Answer

After a judicial foreclosure in South Carolina, a sale often produces funds in excess of the debt, called “surplus proceeds.” An interested party—typically the former owner, junior lienholder, or judgment creditor—can follow these steps to determine if surplus funds remain and how to claim them.

1. Review the Foreclosure Case Docket

Begin by locating the foreclosure case in the county clerk of court’s records where the property lies. You can:

• Search the South Carolina Judicial Department’s online docket system by case number, party name, or filing date.
• Visit the clerk of court’s office and request a copy of the entire foreclosure file, including the report of sale.

2. Examine the Sheriff’s Report of Sale

Under South Carolina Code §29-3-620, the sheriff must file a certificate of sale or return of sale and publish notice of the sale. The report of sale lists:

• The bid amount.
• The total debt, fees, and costs satisfied by the sale.
• Any surplus, i.e., difference between the sale price and the amount due.

When the sale price exceeds the debt and costs, the report will show a monetary surplus.

3. Check for an Interpleader or Order to Distribute Surplus

After confirming a surplus, look for a court order directing the sheriff or clerk to disburse those funds. South Carolina Code §29-3-650 requires the clerk of court to retain surplus proceeds until the court determines the party legally entitled to them. The court may issue an interpleader order inviting claimants to file competing claims.

4. File a Claim for Surplus Proceeds

If no distribution order has been issued and you believe you are entitled to the surplus, you should:

1. Prepare a verified motion or petition in the foreclosure case requesting distribution of surplus funds.
2. Attach documentation proving your interest, such as a junior lien, judgment, or proof of equity.
3. Serve the motion on all parties of record and file it with the clerk of court.

The court will set a hearing and decide which claimant has priority. Priority generally follows the recording date of liens and judgments.

5. Monitor Statutory Deadlines

In South Carolina, the statute §29-3-650 does not set a strict deadline for filing a surplus claim, but courts may dismiss stale claims. File as soon as you learn of the surplus to protect your rights.

Key South Carolina Statutes

• SC Code §29-3-620: Sheriff’s report of sale requirements
• SC Code §29-3-650: Distribution of surplus proceeds

Helpful Hints

• Contact the county sheriff’s office for a copy of the certificate of sale free or for a small fee.
• Use the South Carolina Judicial Department’s e-filing portal for remote access to foreclosure documents.
• Keep detailed records of your filings and service receipts for court hearings.
• Consult the clerk’s website for fee schedules and local practice directives.
• Consider an attorney if multiple claimants dispute the surplus; the court may require formal adjudication.